Yellow metal retreats as geopolitical tensions ease in the Middle East, experts say
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Gold prices fell further at the market open in the United Arab Emirates (UAE) on Tuesday, dropping by more than Dh10 per gram in the past 24 hours.
The 24K yellow metal variant lost Dh4 per gram on Monday morning, compared with Dh283.25 per gram at Monday’s market close, on Tuesday, according to Dubai Jewelery Group data. It was traded at Dh279.25 per gram. The variant showed a decrease of Dh6.25 per gram on Monday alone, taking the total decrease from Monday morning to Dh10.25 per gram.
Among other variants of the yellow metal, 22K opened at Dh258.5 per gram, 21K at Dh250.25 and 18K at Dh214.5.
Spot gold traded at 1.19 as of 9:05 a.m. in the United Arab Emirates (UAE) on Tuesday, as investors booked profits on the strong rally seen over the past few months and easing concerns over tensions in the region. % to $2,305.84 per ounce.
The yellow metal has retreated as geopolitical tensions in the Middle East ease, said Vijay Valecha, chief investment officer at Century Financial.
“Bullion has enjoyed a five-week rally, marking its longest winning streak in more than a year.Haven “His demands on precious metals have been relaxed.”
Vareka added that attention now turns to the economic calendar, as the PCE Price Index report, the US Federal Reserve’s recommended inflation measure, will be released this Friday.
“Analysts expect March growth to rise slightly to 2.6% from February’s 2.5%. This is typically a bearish signal for gold, but a shift from the Fed to rate cuts The precious metal is up nearly 15% this year as of Monday, despite expectations that gold will be delayed. It is rising because it is supported by a resurgence in demand,” Vareka added.
